“With leading market players holding significant market share, the market remains highly consolidated. Major players of the natural food color industry, while expanding their distribution network, continue to make heavy investments in research and development”

According to the new published report by Polaris Market Research, the Natural Food Color Market is anticipated to reach $2,984.9 Million By 2026 and growing at a CAGR of 7.5% from 2020 to 2026

With leading market players holding significant market share, the market remains highly consolidated. Leading players of the natural color industry, while expanding their distribution network, continue to make heavy investments in research and development. The need for a wide range of products and a broader network creates high entry barriers to the market for natural colors of foods, making consolidating market positions difficult for local and regional players.

Food coloring is still playing a major role in the market, with companies still attracting consumers with attractive food colors. Various surveys show that food coloring remains of vital importance on the F&B market as consumers continue to base their assessment on food coloring. While the use of synthetic colors continues, recent research on the association of various health issues with synthetic food color consumption has brought the safety of the ingredients into question by consumers.

The key market trend in the current natural food colors is increased stability and function. The main aim of the manufacturers is also to create natural, powdered food colors especially in yellow, orange and brown. This is due to the use for ready-to-eat meals, sauces, and noodles and of a large amount of seasoning consumption. Herstellers are looking forward to develop a new natural food color source at a low cost. They are concentrating on developing new drying methods and materials that enable powder stability innovation at a competitive cost. As a result, food manufacturers are investing in clean labels, thereby bringing in newer products or revising existing product portfolios through the incorporation of clean label food colors. The result is a growing need for a number of products which bear claims such as “natural.”

Increased government aid is expected to boost the growth of the market in Asia Pacific in turn to encourage the adoption of natural food colors in different food and beverage applications. During the forecast period, the demand for natural colors in China and India is expected to increase. The launch of new products with natural ingredients is a key reason for this. Carmine is the most popular pigment in Asia-Pacific in red colors, while beta carotene and carotenoids are preferable in orange and yellow colors.

The world market for food colors is divided into types, form, applications and geographic areas. It is bifurcated into carmine, curcumin, paprika, turmeric, beet, anthocyanins, caramel, annatto, carotenoids, chlorophyll, spirulina, and others based on the type. The form segments is further bifurcated into liquid, powder, gel, emulsion. The application section is further segmented into bakery & confectionery, beverages, dairy products, frozen products, meat products, and others. According to regions, the market has been analyzed on a country level throughout North America, Europe, Asia-Pacific and Latin America and Middle East & Africa. The maximum development rate on the global market is expected to occur in Asia Pacific due to high demand from economies such as India, South Korea, China, etc.